Measures to lower water prices in Berlin extended for three more years until 2018

Berliner Wasserbetriebe (BWB) is to extend measures to lower its water prices as ordered by the Bundeskartellamt for three more years until 2018. This is the result of a settlement between the company and the authority. The Bundeskartellamt will in return refrain from ordering the reimbursement of excessive prices from the years 2009 to 2011.

Andreas Mundt, President of the Bundeskartellamt: "This agreement with BWB means that consumers in Berlin will be spared a further 185 million euros. We would not have been able to achieve any more than this for consumers with the alternative of reimbursing excessive prices paid between 2009 and 2011. Altogether we have reduced revenue from the sale of water in Berlin by more than 440 million euros. The case clearly shows how much financial leeway there is in water supply in some regions. Overall we have reached a reasonable compromise with BWB, which is acceptable for both sides, relieves the burden on the consumer and avoids bureaucracy."

On 24 February 2014 the Düsseldorf Higher Regional Court (OLG) had rejected BWB's appeal against the Bundeskartellamt's decision of 4 June 2012 (see Press Release of the Bundeskartellamt of 24.02.2014). In its decision the authority had ordered that the revenue (excluding taxes and duties) which BWB earns from the supply of drinking water in Berlin for the period 2012 to 2015 should not exceed a set upper limit. This corresponded to a reduction of on average 18 and 17% compared to 2011. In its order to reduce the level of revenue, which was confirmed by the Düsseldorf Higher Regional Court, the Bundeskartellamt had also reserved the option to order the reimbursement of excessive water prices charged to customers in Berlin in the period 2009 to 2011. The proceedings would have to be continued to achieve this and an amended decision issued.

In agreeing the current settlement the Bundeskartellamt has taken into account that continuing the proceedings and a possible judicial review would have taken up more time and resources. The consumers might have had to wait years for the result. A reversal of the previous transactions between BWB and its customers and between landlords and their tenants would also be very time-consuming and costly for all parties concerned. According to the Bundeskartellamt's calculations the volume of reimbursements for the period 2009 to 2011, including interest, would have amounted to just over 170 million euros.

In calculating the savings achieved by extending the order to lower prices (more than 185 million euros) the Bundeskartellamt based its figures in the case of all the companies on an inflation rate of 1.5% as provided for in its decision.

BWB cannot circumvent its obligation by simply restructuring itself and "seeking relief in the law on fees and charges". Should the company decide to switch from water prices under private law to charges under public law, the settlement would be invalid. In this case the Bundeskartellamt could again order reimbursements for the past.

The settlement also resolves contentious issues such as the exact calculation of the adjusted amount of revenue by deducting fees for special use permits and calculations for the deduction of fees for water abstraction.